Border Cars pre-tax losses jump to £381,000 as turnover falls 22%

Craig Crosbie of Border Cars presents a new car to James Fowler, the former boss of Queen of the South. The car firm sponsored the football team

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Border Cars Group reports pre-tax losses widened in the 2016 year to August as turnover fell 22 per cent to £80.7m.

The Dumfries-based group, which sells and services motor cars and holds eight franchises and operates across seven main sites, racked up pre-tax losses of £381,675 last year against a £193,080 loss in 2015.

In accounts now lodged with Companies House, Border Cars notes stocking loan interest of £330,215 and bank interest of £99,072 and expenses added up to £429,287 against an operating profit of £47,612 (2015: £350,958).

Revenue from vehicle sales dropped 22 per cent to £77.4m (2015: £99.9m) and servicing revenue was 15 per cent at £3.3m (2015: £3.9m).

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The company notes it continued with a “major objective” in the 2016 year to increase the stock turn of motor vehicles across its sites by “selling or trading older stock at low prices, all to improve the used vehicle and pre-registered stock profile”.

It adds this exercise will continue “to a lesser extent” in the 2017 year, in which the broad forecasts turnover will be “similar” to 2016 though with improvement in net profit.

Border Cars Group said it has grown rapidly in the past four years, having doubled the number of staff and deployed new systems – including a new dealer management system – which has taken time to “bed in” but is now reported to be “settling well”.

The company notes it is continuing to monitor the potential impact of Brexit, “which could, potentially have an adverse impact on interest rates, the strength of sterling and the imposition of tariffs”.